Confusion about ESG reporting rampant in private markets

90% of companies confused

Private market companies are baffled by ESG reporting requirements with 90% of companies held in private equity funds unsure how to report, according to a new study by KEY ESG.

The software firm surveyed over 100 industry participants including general partners and portfolio companies, with 43 based in the UK, another 43 in the EU and the final 14 in the US. It found that 75% of the funds it considered were required to report on ESG and 40% of funds used ESG to differentiate themselves. However, there was a lack of understanding around ESG reporting from a portfolio company level and a lack of resource from firms, this meant that firms can take up to 12 weeks to collect ESG data. Liquid alternatives back in the spotlight after year of solid performance ...